It was an exciting weekend for sports fans. The New York Knicks won the NBA championship for the first time in 53 years. And of course, we can’t forget the start of the World Cup. It was impressive to watch the gutsy Japanese team come from behind, twice, to tie with our family-favorite team, the Netherlands. I can’t wait to see more great teams and players compete!
Now, let’s look at two pieces of energy news from the past week.
Shangyou Nie
Editor, Well Read
Shell Makes Key Oil Discovery in Namibia
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Shell announced that it has made a key discovery with Merlin-1X in Exploration License 39 in Namibia’s Orange Basin. This might be the turnaround well for the British major in its exploration efforts in the country.
The latest:
On 9 June, Shell announced the new discovery in Merlin-1X in PEL 93, a block encompassing 12,000 square kilometers.
In the discovery, Shell (operator, 45 percent) and partners QatarEnergy (45 percent) and Namibian national company NAMCOR (10 percent) “delivered the most promising subsurface results to date in PEL 39.”
Merlin-1X is the tenth exploration well that Shell and its partners have drilled in PEL 39 during the past four years.
Light oil and associated gas were encountered in a good-quality reservoir after the well penetrated the Upper Cretaceous Coniacian play.
The well was spudded on 8 April, using Deepsea Mira, a semi-submersible rig owned by Oslo-listed Northern Ocean.
Further appraisal drilling is planned later in 2026.
Many hope the new Shell discovery can turn the company’s exploration campaign in Namibia into a commercial success.
Shell is one of several major IOC strategic partners for QatarEnergy, in addition to ExxonMobil and TotalEnergies.
Other E&P efforts in Namibia:
TotalEnergies is becoming the leading IOC in Namibia.
It took over operatorship of the Mopane discovery in PEL 83 from Galp Energia in December 2025 after two companies swapped some in-country assets.
TotalEnergies plans to take a potential FID in “mid-2026” for its own Venus Oil discovery in Namibia. First oil is projected around 2030.
Shell and QatarEnergy:
QatarEnergy recently expanded its partnership with Shell in another deepwater exploration country, Uruguay.
It acquired 30 percent equity in Off-2 block, operated by Shell (70 percent).
It acquired 30 percent equity in Off-7, operated by Shell (40 percent) with Chevron (30 percent).
It acquired 18 percent equity in Off-4 block, operated by APA (50 percent) and Shell (32 percent).
What they’re saying:
“These are encouraging results that add to our understanding of the Orange Basin’s potential. We are progressing this opportunity through a disciplined, data-led approach to establish commerciality, focusing on investment options that are material, competitive, and resilient within our portfolio,” said Eugene Okpere, Shell’s Executive Vice President for Exploration, Strategy, and Portfolio.
Will Shell turn the Merlin-1X into a commercial discovery? And can Merlin-1X help monetize Shell’s other previous discoveries?
When will TotalEnergies take FID for its Venus and Mopane discoveries?
Which of the IOCs that have made discoveries in Namibia thus far—BP/ENI, Chevron, Rhino Resources—will turn their discoveries into production?
Woodside Exercises Preemptive Right to Block Chinese/Japanese Deal in Australia
Ivan Kuzkin/ Shutterstock.com
Australian major Woodside Energy announced that it will block CNPC’s sale of its 10.7 percent holding in Browse Joint Venture to Japanese company Inpex Corp., exercising its preemptive rights.
Woodside’s decision reflects its strategy to grow its global LNG portfolio. In the meantime, Woodside issued a statement on Monday denying a market speculation that ExxonMobil will acquire the Australian company.
Deal details:
On 16 May, Inpex and CNPC announced that they had entered an agreement for their Browse transaction.
On 12 June, Woodside announced that it had notified CNPC that it would exercise its preemptive rights to acquire the 10.67-percent stake in the BJV, which CNPC previously agreed to sell to Inpex.
Woodside will pay $225 million to CNPC and an additional $175 million, “upon BJV taking a final investment decision for the development of all of the Brecknock, Calliance, and Torosa fields on, or prior to, 30 June 2032.”
Upon completion of the preemptive rights, Woodside will hold 41.3 percent in BJV, together with BP (39.3 percent), Mitsui and Mitsubishi (14.4 percent), and Korea’s GS Energy (5 percent).
BP diluted 5 percent of its interest in BJV to GS Energy in early June for $34 million.
Woodside plans to develop the Browse gas fields through its own operated North West Shelf LNG facilities.
It is interesting that Woodside did not use its preemptive rights to block the BP-SE deal, perhaps because it welcomes a Korean customer into the project.
About the Browse fields:
According to Woodside, the Browse project is Australia’s “largest undeveloped conventional gas resource with potential production of 11.4 million tonnes per annum of LNG.”
Browse has a strategic location in western offshore Australia, which could provide LNG supplies to Asian customers.
The $34 billion LNG development project has not yet obtained environmental approval from the Australian government, as some of the drilling would happen near the Scott Reef in the Indian Ocean.
LNG in Australia:
Australian LNG has gained added significance in view of recent LNG supply disruptions from Qatar due to ongoing sanctions from the Iran War and Russia.
Australia was previously the world’s top LNG supplier. It was surpassed by Qatar and now the United States.
Its East Coast onshore LNG projects met some challenges due to:
Increasing domestic gas needs along the eastern coast
A relatively high unit cost due to the ample gas supply from coal seams.
Woodside is one of the earliest LNG producers in the world, operating North West LNG since 1989.
Woodside hopes to become a global leader in LNG. It took FID for the 24 million tonnes per annum Louisiana LNG in April 2025.
What they are saying:
“Woodside’s decision to preempt reflects our commitment to continue progressing the proposed Browse to North West Shelf development. We see this as a pathway to maximize long-term shareholder value,” said Liz Westcott, Woodside CEO, in a statement.
“This acquisition is a disciplined and capital-efficient way to align integrated value in these assets for a development with long-term cash flow potential,” Westcott added.
What to watch:
Will the Australian government accelerate the approval process to grant environmental approval for Browse development, similar to actions taken for recent developments in Canada?
When will Woodside take FID for the Browse LNG project?
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